Taxation
Tough action against big tax evasion acts as deterrent: CBDT
The Central Board of Direct Taxes (CBDT) on Monday dismissed reports that it has asked its officers to go beyond raids and searches to target tax evaders and said stringent action in big cases of evasion would demonstrate to compliant taxpayers that laws are just and fair.
 
"CBDT clarifies that this is factually not correct. It may be appreciated that the need of the hour is to provide effective deterrence since the soft action in extreme and big cases of tax evasion affects the behaviour of the compliant tax payers," said a finance ministry statement here.
 
"This has been brought out in the latest study conducted by the NIPFP (National Institute of Public Finance and Policy)," it added.
 
The statement referred to a discussion paper circulated during the recently-concluded national conference of chief commissioners and directors general of income tax and said the media reports had taken things out of context.
 
"Effective and stringent action only in known and big cases of tax evasion would go a long way in demonstrating to the large number of compliant tax payers that the tax laws are just and fair and also encourage voluntary tax compliance," CBDT said.
 
Pointing out that cases selected for intrusive action after detailed intelligence gathering and due diligence are exceptional and are not the norm for routine cases, CBDT added: "It may be noted that only 537 searches were conducted in financial year 2014-15 in which admitted undisclosed income was to the tune of Rs.10,288.05 crore."
 
Finance Minister Arun Jaitley last month asked the income tax department to squeeze the parallel economy, also called black economy, without being harsh.
 
"The parallel economy has to be squeezed and this has to be done in a very fair manner, not in a harsh manner. In doing so, as senior officers you have to maintain the highest standard of integrity," Jaitley said, addressing the annual conference of senior officials of the CBDT.
 
"Black money has to be squeezed," he said, adding that the government has taken a series of measures to curb black money, including passage of the black money law by parliament and the introduction of the Benami Transactions (Prohibition) Bill to deal with domestic illegal wealth.

User

RBI allows banks to control company if debt restructuring fails
The Reserve Bank of India (RBI) on Monday allowed banks to recast a company's debt under a "strategic debt restructuring" (SDR) scheme wherein the lender must hold 51 percent or more of the equity after the debt-for-share conversion.
 
"Post the conversion, all lenders under the JLF (joint lenders' forum) must collectively hold 51 percent or more of the equity shares issued by the company," the RBI said in a notification.
 
The central bank said that banks will have to closely monitor the performance of the company and should appoint professional management to run the company. At the same time, the banks themselves should try and sell their stake "as soon as possible," it added.
 
The RBI announced a set of guidelines on the SDR scheme, which provides a more flexible process for lenders to recover bad loans.
 
Other measures announced on Monday include allowing lenders to convert debt to equity within 30 days of the review of the company accounts.
 
Moreover, lenders who acquire shares of a listed company under a restructuring will be exempted from making an open offer, as per rules from capital markets regulator Securities and Exchange Board of India (Sebi), the RBI said.
 
Sebi had already allowed such conversion of loan into equity shares on March 22.
 
These restructuring norms will apply to all company accounts before Monday, the RBI said.

User

Merkel says 'there isn't much time left' for Greece
German Chancellor Angela Merkel on Monday warned that time is running out for a deal with Greece's creditors, and insisted that solidarity with European partners and the International Monetary Fund would be contingent on Greece's initiative to implement reforms.
 
"There isn't much time left. Everyone is working intensively. The day after tomorrow there will be opportunity to discuss it with the Greek prime minister. Every day counts now," Merkel said in a press conference after the conclusion of the G7 summit in the Schloss Elmau hotel in southern Germany.
 
Merkel added that the Greek financial crisis was one of many issues discussed in the meeting, which she attended on Monday along with Jean-Claude Juncker, the president of the European Commission, or EC, and managing director of the IMF, Christine Lagarde.
 
Merkel reiterated that all summit attendees want Greece to remain in the Eurozone, but reminded that there are rules that govern the union and that European and international solidarity must be matched by member countries' own efforts.
 
Merkel argued that measures taken by the troika (EC, IMF and the European Central Bank, or ECB) proved to be effective in the cases of Ireland, which thrived after applying a tough reform program, Spain and Portugal, which created jobs despite ongoing high unemployment rates.
 
Merkel pointed out that the situation in Cypress also leads to a path of "success".
 
The German chancellor confirmed her intention to meet again with Greek Prime Minister Alexis Tsipras in Brussels on June 17 under the auspices of the EU summit meeting with the Community of Latin American and Caribbean States, or CELAC.
 
In her view, the proposal presented to Athens by the three creditor institutions is "a breakthrough" that must be negotiated. 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)